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FAQs on tipped occupations and overtime deductions

Nov 21, 2025 · 1 min read

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Under H.R. 1, P.L. 119-21, the law known as the One Big Beautiful Bill Act (OBBBA), new federal income tax deductions are available for qualified tips and qualified overtime compensation. These deductions are effective for tax years 2025 through 2028.

  • IRS Notice 2025-69, released on Nov. 21, 2025, offers guidance to taxpayers on how to determine the amount of their deduction without receiving a separate accounting from their employer for cash tips or qualified overtime.

  • IRS Notice 2025-62 was released

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Tax

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Individual Income Taxation
International Tax
Tax Policy & Regulatory Change
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